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SEMESTER 201905
LEVEL : DEGREE
INSTRUCTONS TO STUDENTS
You are required to evaluate an existing business towards improvement by applying DSS concepts
and models into a real life scenario.
SHOULD the government choose to shut it down, Malaysia Airlines Bhd will go down as the first
national airline in Asia to go bust (Japan Airlines emerged from bankruptcy after two years), joining
the ranks of its European counterparts such as Sabena, Air Berlin, Alitalia and Cyprus Airways.
The flag carrier, which saw Khazanah Nasional Bhd pay RM1.38 billion to take it private in August
2014 and reboot it into a smaller airline under its current name in September 2015, is once again
facing an uncertain future after Prime Minister Tun Dr Mahathir Mohamad remarked last week that
shutting it down was one option being considered by the government. Selling the national asset and
refinancing its debts are two other possibilities the government will explore, he said.
The prime minister’s warning comes as calls for the beleaguered airline to be wound down intensified
in the past few weeks. The airline’s woes flared up on March 5 after its sole shareholder Khazanah
reported its first annual loss in over a decade, mainly due to a RM3.7 billion writedown of Malaysia
Airlines’ value last year.
It doesn’t help matters that the airline missed its target to return to the black last year and, according
to Centre for Aviation (CAPA) chief analyst and chief representative for Southeast Asia Brendan Sobie,
will find it difficult to achieve profitability, at least in the near future, given current market conditions.
On March 1, the private company revealed that it finished 2018 with a marginally lower loss
compared to a year ago but it did not disclose the figures.
Filings with the Companies Commission of Malaysia (SSM) show that Malaysia Airlines’ net loss
increased by 85% year on year to RM812.11 million for the financial year ended Dec 31, 2017
(FY2017). It has lost RM2.35 billion between 2015 and 2017.
While it did not disclose its exact revenue for FY2018 except to say that it grew by 1% y-o-y, back-
of-the-envelope calculations show that revenue rose to RM8.76 billion from RM8.67 billion in
FY2017. It has yet to file its financial statements for FY2018 with SSM.
Malaysia Airlines blamed FY2018’s poor performance on crew shortage, intense competition,
oversupply of capacity and volatility in fuel prices and foreign exchange.
Students are required to do presentation about your findings . Keep the following in mind as you
prepare your presentation and documentation .
ASSIGNMENT GUIDELINES
3. Minimum pages : 10
b. Font Size : 11
c. Paragragh : 1.5 Spacing